Competition cuts the cost of listing on AIM

THE COST of listing on London’s junior stock market has fallen for the first time in seven years due to competition, according to research released today.

A dearth of listings on Aim, the exchange for small businesses, meant advisers have been willing to cut prices in an attempt to win initial public offering (IPO) clients.

As a result the total cost of listing a company on Aim fell by a fifth during 2012 to 8.43 per cent of total funds raised, according to accountancy firm UHY Hacker Young. This includes all stock exchange fees and payments made to advisers. There was more good news for small businesses as the total amount of money raised from new listings on Aim increased by 26 per cent to £676m in 2012, up from £518m for the previous year.

Earlier this year Seymour Pierce, one of the largest Aim advisers, fell into administration blaming declining revenue from the sector.